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Business permits are crucial in granting permission to any individual or organization to engage in commercial activities within the country. The permits act as an official authorization by the government in ensuring that businesses comply with local regulations and other operation requirements. Read below to know more about the business permit renewal requirements in 2024.

The renewal process comes with a number of conditions, requirements, and steps any owner or organization must adhere to. In this guide, you will uncover how to apply for business permit renewal in 2024.

Understanding Business Permit Renewal

Any business owner needs a business permit to perform commercial business within the local market. These permits can be secured from any local government unit (LGU). Undergoing the process of renewing your business permit contributes to the following reasons:

• Avoiding Penalties: Renewing business permits leads to businesses avoiding penalties and fines. Failure to secure a renewed permit can result in financial repercussions affecting your business. 

• Ensuring Continuous Operations: Renewing your business permit also ensures uninterrupted operations. Maintaining updated permits helps businesses run smoothly and maintain a stable working environment. 

• Government Regulations and Guideline Adherence: Permit renewal also reflects your and your business’s commitment to following government regulations. Undergoing annual renewal shows the business follows the latest, updated legal requirements for the following year.

List of Requirements for Business Permit Renewal in 2024

The specific requirements and associated fees for renewal vary and depend on your LGU. Because of this, businesses need to check with the LGU regularly for a more thorough list. However, most LGUs will require the following requirements for renewal of business permits in 2024:

• Barangay Business Permit

• Business Clearance for the previous year, as well as, its official receipt.

• Application Form

• Company Documents, which include:
  • Community Tax Certification
  • Latest Income Tax Returns
  • Latest Audited Financial Statements
  • Notarized Contract or Lease (If the business is renting space)
  • DTI, SEC, or CDA Registration
  • SSS, PAG-IBIG, and Philhealth Registrations of employees at the time of renewal.

• Renewed BIR Registration

Associated Fees for Business Permit Renewal

The renewal process requirements also include payments for associated fees. One of the most important is the annual registration fee of Php 500. Additionally, you and your business need to pay these fees to obtain the following documents below for the renewal process:

• Local Business Tax (LBT)

• Sanitary Inspection Fee

• Garbage Fee

• Building Inspection Fee

• Mayor’s Permit Fee

• Zoning Fee

• Other required fees imposed by your LGU

How Long is The Renewal Process of Business Permit?

The business renewal process of 2024 officially started on January 2 and lasts until January 20. The dates are set up automatically on the same days annually. While the process of renewing a business permit generally takes one to two weeks, some LGUs and offices can release the permits within the day.

FAQs

Here are some frequent questions regarding the renewal of business permits annually and related concerns.

How much is business permit renewal for 2024?

The annual registration fee for the renewal is Php 500 and must be paid to the BIR on or before January 31 of each year.

How long is the business permit valid in the Philippines?

Your business permit is valid until December 31 of each year. Upon expiration, businesses are required to renew the permit before the end of January within the following year.

Is a business permit the same as a mayor’s permit?

The business permit and the mayor’s permit are the same. The document is the mayor’s permit because the local government issues it.

Conclusion

The business permit renewal in 2024 is essential in keeping business running and operating within the country. Garnering a renewed permit can keep businesses from getting legal fines and stay active in engaging commercial markets. Thus, it is important to understand this information to keep you updated during renewal. 

Sources: (1),(2),(3),(4),(5)

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Also Read: GUIDE: Undergoing NBI Clearance Renewal Online in the Philippines